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Basic Question 2 of 7

Negative cash flows from operations and high "cash burn rates" are two factors that may have contributed to the decline in Internet stock values in 2001 (the dot-com bubble). True or False?

User Contributed Comments 3

User Comment
myanmar good point
Bibhu Burn rate is usually quoted as cash spent per month. A burn rate of 1 million could imply compnay spending 1 million per month.
ldfrench Pets.com for example
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

analyze and interpret both reported and common-size cash flow statements

CFA® 2024 Level I Curriculum, Volume 2, Module 5.